Hiring the Right People

The value of hiring the right person far outweighs the cost of hiring the wrong person

The cost of hiring the wrong person.

One in three people believe hiring the wrong person costs their business nothing. However, research suggests a poor hire can cost the company between 30% of a person’s first year earnings to three times a person’s annual salary. In addition to the financial impact, a poor hire can also decrease productivity, create cultural imbalance, and tarnish reputation.

Jim Collin’s advice from Good to Great:

1) Get the right people on the bus

2) Get the right people in the right seats, and

3) Get the wrong people off the bus.

Q): Why do poor hiring decisions happen?

CareerBuilder found that 43% of those surveyed said they made a poor hire because they felt the need to hire somebody quickly. In addition, the survey found 20% of people admitted to having a lack of skills to interview and hire people effectively.  (Society for Human Resource Management, 2017)

Q): How do you calculate the cost to replace a poor hire?

Here are some guidelines provided by the Society of Human Resource Management:

 

  • Recruitment advertising fees and staff time
  • Relocation and training fees for replacement hires
  • The negative impact on team performance
  • The disruption projects
  • Lost customers
  • Outplacement services
  • Weakened employer brand
  • Litigation fees

Let SOLVE help you hire the right person using evidence based solutions and proprietary technology.

Learn more about our web-based hiring and assessment platform.

HireForward®

COMING SOON! Check out our analysis of assessments which reviews the most common personality tests used in hiring processes.

Q): How can I improve my hiring practices? Volume Selection

Volume selection processes can improve quality selection and decrease turnover.

Q): How can I ensure I hire the right leader?  Executive Selection

Executive hiring and selection is different from other types of employee hiring.

Due to the high costs associated with failure, a smaller market from which to recruit, and the number of internal stakeholders who often want to be involved, hiring a leader calls for greater patience and confirmation of biases. According to research, high performing executives can add millions of dollars to their company’s bottom line; however, failure rates for senior executives are increasing. In fact, the rate of CEO turnover is higher, and CEO’s appointed in the last 25-years are three times more likely to be fired than CEOs appointed earlier (Zaccaro, 2010).

 

Effective executive selection includes an evidence-based approach with assessments that can match the candidate’s characteristics with the role and the candidate’s character to the values of the company. Contact SOLVE to learn more about our executive selection process.

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